Why Do Parties Who Are Not in Privity of Contract

question 85

Multiple Choice

Why do parties who are not in privity of contract usually not have rights to a contract?

• A)Because it would be too difficult to determine who has contractual rights if privity of contract is not required.
• B)Because contracts are private agreements between parties who each agree to give or do something for the other party.
• C)Because it would be against public policy to provide rights to a contract to those without privity.
• D)Because privity of contract is necessary to ensure a contract is in compliance with the UCC.
• E)Because of the statute of frauds.

Identify the reasons and typical scenarios under which shareholders might initiate litigation.

Grasp the various types of disclosure costs and their implications on financial reporting.

Comprehend the significance of timely financial information and its impact on decision-making.

Recognize the goals of GAAP in financial reporting and understand its importance.

---

Definitions:

Servant Leadership

A leadership philosophy that emphasizes the leader's role as a servant first, prioritizing the needs of followers, organizations, or communities above their own.

Group Performance

The efficacy and outcome of a group's ability to achieve its goals or objectives.

Team Potency

The collective belief of a team in its own effectiveness and ability to successfully accomplish tasks.

Clarifying Goals

The process of making objectives clear and understandable to ensure all team members are aligned and working towards the same outcomes.